Household income hits record, but lower earners lose ground

Data: U.S. Census Bureau, Current Population Survey, 1968 to 2026 Annual Social and Economic Supplements; Note: Census identifies breaks in the series in 2013 and 2017 due to methodological changes; Chart: Russell Contreras/AxiosU.S. household income hit a record in 2025, but the lowest earners barely shared in the gains, new Census data show.Why it matters: On paper, Americans look richer than ever. But broader measures of financial security show millions still getting squeezed by medical costs, uneven income gains and a thinning public safety net.The 2025 Census report largely captures the economy before the major safety-net reductions in President Trump's "Big Beautiful Bill" took hold.That makes this year's record income and near-record-low official poverty numbers an important benchmark for measuring what happens next.By the numbers: Real median household income rose 2.6% to $87,460 in 2025, the highest inflation-adjusted level since Census records began in 1967.Median post-tax household income climbed 3.1% to $76,060.The official poverty rate fell for a third straight year, dropping slightly to 10.2%, or about 34.5 million people.Child poverty fell to a record-low 13.4%, while poverty among Hispanics dropped to an unprecedented 13.9%.State of play: The economy delivered historic topline numbers without spreading the gains evenly.Income among the wealthiest 10% of Americans rose 1.7%, while income among the bottom 10% showed no significant change — indicating that the low-income households largely missed out on the gains.Households at the 90th percentile earned about $261,300, more than 13 times the roughly $20,010 earned at the 10th percentile.The top fifth of households captured 52.4% of all household income. The bottom fifth reported earning just 3%.Zoom in: Latinos offer one of the clearest examples of the split-screen economy in 2025.Hispanic poverty fell to its lowest level since Census began tracking it in 1973. But the median household income among Hispanics, $73,260, showed no significant change from 2024.Meanwhile, 21.8% of Hispanic adults ages 19 to 64 were uninsured in 2025, down a bit from the previous year — but still the highest uninsured rate among the major racial and ethnic groups shown by CensusYes, but: Big racial income gaps remain even as some groups posted gains.Asian American households had the highest median income at $126,300 in 2025, compared with $91,930 for white households and $59,980 for Black American households.Black Americans' household income rose 4.8% from 2024 and whites' household income rose 3%, while Asian Americans' household income showed no significant change.Zoom out: A broader measure of hardship paints a less rosy picture.The Supplemental Poverty Measure, which factors in taxes, government benefits, housing, work and medical expenses, held statistically steady at 13.1% — nearly 3 percentage points above the government's official poverty rate.Medical expenses put an estimated 7.7 million more peop